Strong rebound in Middle East economies

DUBAI. Business confidence in the Middle East has strengthened in recent months as coronavirus restrictions eased and vaccination rollouts progressed according to the latest Economic Insight report for the Middle East, compiled by Oxford Economics.

While there are positive signs for recovery in the second half of this year and beyond, economies still remain far from their pre-pandemic levels.

According to the report commissioned by ICAEW, the Middle East’s regional GDP will grow by 2.4 per cent this year, a similar rate to the region’s average growth trajectory in the last decade, and an improvement from the 4.4 per cent it shrank by in 2020. Oil production cuts are weighing on output, and new Covid-19 outbreaks have forced tighter lockdown measures in recent weeks, disrupting the recovery process. However, strong Purchasing Managers’ Index readings indicate growth accelerating in the coming months, boosted by rapid vaccine rollouts in several countries. (Staff Report)